Contact us to know more about the Concierge market in China, at dx@daxueconsulting.com
After taking a brief walk around a city in China like Shanghai or Beijing and visiting office blocks, apartment blocks, shopping centres and hotels it is evident that the concierge market in China is booming . Concierges in China exist in a variety of settings most notably in the hospitality and corporate sector.
However due to the recent boom in this concierge sector, more and more industries are employing concierge services, especially in China. Today in China, concierge services can be seen in a variety of settings including the hospitality, accommodation, shopping, travel and corporate services. This sector is becoming more commonplace in China and many real estate management sectors are offering concierges services in the lobby of apartment blocks as standard.
Expanding nature of the Concierge Market in China
In the past, the concierge market used to be restricted to high-end hotels and the service used to be seen as a very expensive service. But, more recently in China with the shift of the population into middle class especially in 1st tier cities like Shanghai and Beijing, the concierge industry has taken off. A recent study in China found that over 55% of Beijing’s population and 51% of Shanghai’s population is now in the middle class, which has resulted in the rise of the concierge market. Today in Shanghai and Beijing you can walk into most shopping centres, hotels, businesses and apartment blocks to find some form of a concierge service. The expansion of shopping centres and airports in China has also resulted in the need of concierge services in these locations, to help customers find shops, banks and departure gates.
The property market
The property market in China is increasingly becoming more competitive, meaning that real estate companies have to enhance their offering by providing premium concierge services to attract middle and upper-class buyers. The offerings in many apartment complexes include laundry facilities, grocery delivery, takeaway food restaurants and beauty and relaxation centres as part of the offering. The estate agencies and property management companies hire sub-contractors to carry out the concierge service, which has, in turn, resulted in the concierge industry in China to rise. Third party concierge services are often hired by the real estate group to provide a range of services, depending on the level of the facility, as the price of the accommodation goes up the concierge services improve to match the standard of accommodation. Real estate developers describe the services provided to residents between the front gate and the elevator of the apartment block as the “last mile advantage”. The quality of service in this area creates a differentiator between an average apartment and an apartment that someone will consider purchasing.
Corporate and Social Concierge
Today in China, many business people tend to be very busy with work and require Concierge’s to carry out simple tasks to ensure they remain organised and on top of their schedule. This has resulted in many concierge opportunities in the corporate sector in China. Concierges in China can free up time for busy managers, by carrying out everyday tasks like running errands and taking care of groceries and laundry. This allows for managers and important individuals in a company to have more time to focus on carrying out more important tasks which add value to the company. Concierges are also used in China to enhance, prepare and organise busy workers’ social lives and free time, from organising holiday arrangements to booking concert tickets.
Expats and Concierge services
Many expats who move overseas may not be used to customs and culture in their new setting, and may require assistance to help settle into their new location, especially in China. Many companies may offer expats with concierge memberships which will help find their children a school, help find them a place to live, a driver and other general advice of living in a new location. Many expats in China are using these services and as a growing number of expats come to China as the Country grows economically, the number of concierge services are also increasing. The concierge market provides a vital service to expats as many do not have the Chinese language, and may struggle with everyday practices like calling a plumber, booking a train ticket and paying for products online. As the expat community in China grows the Concierge industry will also in turn grow. In a recent study on ex-pat life in China, only 14% of people said they were completely satisfied with their life in China, this shows there are opportunities to improve expats’ life in China and this is what concierge services provide in the Chinese market.
It is clear that there are numerous types of concierge services in China, as the Chinese economy grows and residents become more affluent the concierge industry is set to grow. Expats in China represent a large sector of the concierge market, due to the difficult transition into a new culture with a different language and customs, as a result, the concierge market in China is booming.
Daxue and the Concierge Business
A lot of people are sometimes just too busy to take care of their daily routine in China, especially when they are expatriates are even they are travelling. In order to launch a concierge business in China, it is important to have a strong business plan that will attract the kind of clients for a future successful business.
The market
Concierge can deal with different types of services, you need to focus and the one you can provide. Having a strong brand identity among Chinese customers will have a huge impact on the success of your business. You should also choose a business that is in line with a specific type of customers.
Corporate or Personal
Again, this is a choice made upon where are your strengths and who you wanna reach. This corporate market consists of businesses that contract for concierge services for their managers and executives.
Marketing Strategy
Your market plan should be located where your clients shop for services.
See also:
- https://www.reuters.com/article/us-china-property-management-idUSKCN0QX0KJ20150828
- Consulting in China
